The Supreme Court of Appeal has failed to hear an appeal in a case in which Malawi Law Society is challenging a Reserve Bank of Malawi (RBM) directive that compels insurance companies to pay directly to claimants.
Today the court was expected to hear an appeal on a judgment by the then High Court Judge Healy Potani which dismissed a Malawi Law Society (MLS) application for a judicial review of RBMs directive.
Before the RBM directive was issued on August 15 2014, financial institutions, including insurance firms, were paying claimants through legal firms that were representing them or claim settling agents.
However, the Law Society challenged the directives, arguing RBM acted beyond its powers and unreasonably as its decisions have the effect of regulating lawyer-client relationship in insurance claims.
But today, the Supreme Court of Appeal has t failed to hear the case because court failed to form a quorum.
Currently, there are seven Supreme Court of Appeal justices but court could not sit because one of the Justices Healy Potani heard the case when he was a High Court Judge.
Meanwhile, the case has been adjourned until other judges are appointed in the Supreme Court of Appeal.
